The article examines a settlement agreement as one of conciliation procedures in economic proceedings. For reconciliation, the parties must take active joint actions to achieve a result. It was revealed that the procedure for the reconciliation of the parties and the content of the settlement agreement are not and cannot be established by the current procedural legislation, since it is actually a negotiation process that is impractical to regulate in detail. However, the draft settlement agreement as a result of joint efforts is submitted to the court for further approval, and approval is not a formal, automatic act of the court. Domestic procedural codes are analyzed and it is proven that the grounds for a judge’s refusal to approve a settlement agreement are clearly established by the procedural law, but are not identical in different laws. It is proposed to supplement Article 192 of the Economic Procedural Code of Ukraine with such reasons for refusing to approve a settlement agreement as "the terms of the agreement do not meet the interests of society" and “there are reasonable grounds to believe that the conclusion of the agreement was not voluntary, or the parties have not reconciled”. The author agrees with the position that the parties to the settlement agreement should reach a compromise on all important substantative legal issues that belong to the subject of the dispute and can be implemented by the participants in the case. On the other hand procedural issues cannot be a part of the settlement agreement. It is proposed to highlight the following positive features of the settlement agreement: 1) the settlement agreement allows the parties to resolve the conflict without a lengthy court process, saving time and resources of business and the judicial system; 2) the settlement agreement gives the parties the opportunity to go beyond the requirements and independently choose the terms of dispute resolution; 3) resolving the dispute through an settlement agreement contributes to maintaining good business relations between the parties; 4) settlement agreements reduce the burden on the judicial system; 5) the use of settlement agreements by Ukrainian business entities increases the competitiveness of the Ukrainian business environment in the world. The task of the court is to prevent abuses in the process of concluding a settlement agreement and the infringement of the interests of the parties as well as other persons.